Invest in Sofala Province

An Investor's Guide to Sofala Province - 

Beira Industrial Parks and Special Economic Zones

The city of Beira, located in Sofala Province, is strategically positioned as a cornerstone of Southern Africa's logistics infrastructure and a vital trade conduit for the Southern African Development Community (SADC). The region is anchored by the Beira Corridor, a critical transportation route that links key neighboring countries like Zimbabwe and Malawi to the Indian Ocean. To capitalize on this strategic advantage, Sofala Province is focusing on specialized industrial development through two major projects: the operational Manga-Mungassa Special Economic Zone (SEZ) and the large-scale Munhava Industrial & Commercial Park (MICP).

These developments are a direct response to Mozambique's national industrial policy priorities aimed at promoting industrial competitiveness, attracting investment, and increasing employment.

I. Munhava Industrial & Commercial Park (MICP)

The Munhava Industrial & Commercial Park, officially known as the Industrial & Logistic Park, is designed primarily as a major scale and infrastructure play. Its purpose is to anchor the Beira Corridor for the long term by building foundational capacity.

Location Munhava, Beira City, Sofala Province.

Total Area 900 hectares.

Phase/Timeline The project is implemented in phases, with the initial completion projected for 2035. A pilot phase of 50 hectares is currently being prepared.

Management SDUBeira S.A., a public limited company 100% owned by the Beira Municipal Council.

Logistical Core The park is adjacent to the Port of Beira and strategically located near road, railway, and airport access, providing a crucial intermodal capability. It is positioned to become a "REFERENCE LOGISTIC HUB FOR HINTERLAND COUNTRIES".

Infrastructure Development includes a new dedicated access road to the Port of Beira, aimed at reducing traffic congestion in the city and improving safety and quality of life for residents. The pilot phase (50 ha) already includes essential landfills, sanitation, water, and energy infrastructures. The facility may serve as a potential "dry port" or logistic platform.

Investment Outlook The total estimated investment required for the Munhava project over 25 years amounts to $2.86 billion USD.

Impact Projection The project is projected to generate approximately 41,000 total jobs (including 16,000 direct jobs and 25,000 indirect jobs with suppliers) over a 25-year period.

Regulatory Status The park is designed with the possibility of acquiring Special Economic Zone (SEZ) or Industrial Free Zone (IFZ) status in the future.

Investment Opportunities in MICP

The MICP is tailored to attract a broad array of investment, strategically balanced between labor-intensive light manufacturing and heavy processing:

1. Processing Industry: Focused on the transformation of raw materials into value-added products, which aligns with national industrial goals. Targeted subsectors include:

   • Oil & Gas processing.
   • Metals & Mining, leveraging regional access to minerals like coal and limestone/clinker.
   • Food and beverage products.
   • Wood products.
   • Drugs/Pharmaceuticals.

2. Manufacturing: Suitable for factories intending to export their products to markets in Africa, Asia, the Middle East, and India. Specific examples include Textiles, Footwear, Diapers, Household appliances, Artificial Hair, and Plastics.

3. Support Infrastructures & Construction: Opportunities exist for companies supplying Internet, Electricity, Water supply, and Security Services, as well as those involved in Metallurgy and casting of construction steel, Cement production, and Heavy Equipment Hire.

II. Manga-Mungassa Special Economic Zone (SEZ)

The Manga-Mungassa SEZ is an incentive-driven and regulatory play that serves as an established model of the effectiveness of Mozambique's SEZ regime in attracting foreign direct investment (FDI).

Essential Information on Manga-Mungassa SEZ

Location Beira City, Sofala Province.
Legal Mandate Established by Decree No. 22/2012 on June 6th.
Area 217 hectares.
Status Fully operational.
Management Private management by Dingsheng Internacional Investimento, Lda., authorized to develop and manage the necessary infrastructure.
Operational Success Hosts 8 authorized projects, all operational.
Investment & Jobs Approved investment of USD 509.15 million, generating 2,396 jobs for Mozambican nationals.

Investment Opportunities and Focus Sectors

Manga-Mungassa is designed to attract diverse investment projects, particularly those benefiting from its proximity to the Beira port complex. Key focus sectors include:

• Industry.
• Logistics and Transport. Its port access makes it a crucial hub for central Mozambique's trade.
• Hospitality and Services.
• Tourism, enhanced by the proximity of the Gorongosa National Park in Sofala Province.

SEZ Fiscal and Non-Fiscal Incentives

The SEZ framework provides comprehensive incentives designed to enhance profitability and secure specialized investment. Goods entering, circulating, manufactured, transformed, or exported within the SEZ are exempt from customs duties, fiscal, or para-fiscal charges.

Key Fiscal Incentives:

• IRPC (Juristic Persons Income Tax) Exemption: Companies operating within the SEZ benefit from a 100% IRPC exemption for the first five fiscal terms.
• IRPC Reduction: This tax benefit continues with a 50% reduction from the 6th to the 10th fiscal term.
• IRPC for Operators (Infrastructure Providers): Entities authorized to develop and manage the zone's infrastructure (like Dingsheng Internacional Investimento) receive a 25% IRPC reduction for the entire lifetime of the project after the initial tax holiday period.
• CAPEX Exemptions: Enterprises are exempted from import duties and VAT on construction materials, machinery, equipment, spare parts, and other goods necessary to carry out the licensed SEZ activity.

Non-Fiscal Benefits:

• Free Exchange Regime: The SEZ operates under a free exchange regime, allowing for offshore operations and facilitating the rapid fulfillment of commercial and financial obligations abroad.
• Administrative Streamlining: The general SEZ framework includes streamlined business registration, simplified customs procedures, and efficient processing of labor and immigration permits, which assists international investors in securing necessary skilled foreign personnel.

III. Strategic Outlook and Synergies for Investors

The simultaneous development of the Munhava Industrial Park (MICP) and the Manga-Mungassa SEZ provides a highly competitive economic environment in Beira capable of absorbing diverse types of investment, from bulk processing to high-value manufacturing.

1. Functional Differentiation: The Manga-Mungassa SEZ (217 ha) is ideal for specialized, high-value manufacturing, logistics, and service projects that prioritize immediate fiscal relief and accelerated capital recovery due to its robust incentive package and operational status. Conversely, the Munhava Industrial Park (900 ha) is optimal for major enterprises in heavy processing industries (e.g., metals and mining transformation), bulk storage, and regional distribution centers that prioritize vast scale, direct port/rail linkage, and overcoming logistical inefficiency.

2. Mutual Reinforcement: The efficiency improvements driven by the MICP's major infrastructure investments, such as the new dedicated Port access road, directly benefit tenants in the Manga-Mungassa SEZ by reducing logistical risks and costs. Furthermore, the MICP's planned focus on processing raw materials (food, wood, metals) creates potential supply chain clustering, as these processed inputs could serve the specialized manufacturers operating in the incentive-rich Manga-Mungassa SEZ.

3. Workforce Potential: The dense workforce projected for the 900-hectare MICP (41,000 jobs) establishes a significant labor pool in the Munhava area, which benefits the adjacent Manga-Mungassa SEZ (2,396 current jobs) by ensuring better availability and proximity to labor.

These two projects, backed by national industrial policy, underscore Beira's position as a critical artery for SADC trade and offer investors a strategic entry point into Mozambique's growing economy. The SEZ model, in particular, demonstrates a commitment to attracting capital-intensive projects, with the capital density in Manga-Mungassa estimated at approximately $212,000 per job.

Investing in Beira is like acquiring two complementary tools: Manga-Mungassa acts as a high-precision, incentive-fueled engine for immediate capital efficiency, while Munhava provides the massive, resilient chassis and logistical highways necessary for decades of large-scale regional trade.